The DIKW model for knowledge management

and data value extraction

The DIKW model or DIKW pyramid is an often used method, with roots
in knowledge management, to explain the ways we move from data
(the D) to information (I), knowledge (K) and wisdom (W) with a
component of actions and decisions.

Simply put, it’s a model to look at various ways of extracting insights and value
from all sorts of data: big data, small data, smart data, fast data, slow data, it
doesn’t matter. The DIKW model is often depicted as a hierarchical model in the
shape of a pyramid and also known as the data-information-knowledge-wisdom
hierarchy, among others.

The DIKW model: usage and limitations

As is the case with all models, DIKW has its limits. You’ll notice the
DIKW model is quite linear and expresses a logical consequence of
steps and stages with information being a contextualized ‘progression’
of data as it get more meaning.

Reality is often a bit different. Knowledge, for instance, is much more than just
a next stage of information. Nevertheless, the DIKW model is still used in many
forms and shapes to look at the extraction of value and meaning of data and
information.
 A
traditional data-information-knowledge-wisdom pyramid – source Mushon
One of the main criticisms of the model is that it’s a hierarchical one and misses
several crucial aspects of knowledge and the new data and information reality in
this age of big data, APIs and ever more unstructured data and ways to capture
them and turn them into action, sometimes bypassing the steps in DIKW (think
about self-learning systems). However, the essence still stays the same. Just
look at what we do with data lakes and turning data through big data
analytics into decisions and actions.

If you want to learn all about the DIKW model, there is an excellent paper in the
Journal of Information Science, entitled ‘The wisdom hierarchy: representations
of the DIKW hierarchy’ (PDF) and written by Jennifer Rowley of the Bangor
Business School.

It’s an interesting paper as Jennifer revisits the DIKW hierarchy, a.k.a. ‘data-
information-knowledge-wisdom hierarchy’, ‘Knowledge Hierarchy’,
‘Information Hierarchy’ and, almost done, ‘Knowledge Pyramid’. Given the
many names it received you can imagine the DKIW Pyramid has always been
very popular in the broader space of information management – and beyond.

Beyond wisdom: enlightenment

As you can imagine, the DIKW Pyramid – as all models or ways of

looking at things in a more or less structured way – has been discussed
and looked upon from various angles with some suggesting to ommit
wisdom, others debating the exact definitions and the relationships
between them and a few to add a dimension of truth and moral sense to
it, with the addition of something even higher than wisdom:
“enlightenment”.

While it’s very interesting to discuss about things such as truth, right and
wrong, enlightenment and so on, that’s not our purpose here. The long history
of DIKW and views on it have made it easier to illustrate this article, that is for
sure.

We use DIKW as one of several ways to define, illustrate and explain the
various forms of data, information etc. in a business, transformation and
customer/stakeholder perspective. We have nothing against enlightenment as a
step beyond wisdom, usually defined as ‘evaluated understanding’ or ‘knowing
why’, which we would then call truly understanding the purpose of information
in a context of what people need and want, beyond the more factual knowledge.
The enlightened business? Who knows.

In her paper, Jennifer Rowley mapped the DKIW model to different

types of information management systems.

 Data is related with transaction processing systems.

 Information with, indeed, information management systems.
 Knowledge with decision support systems.
 Wisdom with expert systems.
Again, a highly interesting and smart read so check it out.

What matters: actions and decisions in DKIW

What we’re most interested in, is the action part. We’ve talked about
‘actionable data’ and ‘actionable information’ before and Jennifer
Rowley refers in her paper to knowledge as being actionable
information, based on the work of E.M Awad and H.M. Ghaziri, more
specifically their 2004 book Knowledge Management.

Action. Decisions. That’s what we need. Because without action there is little
sense in gathering, capturing, understanding, leveraging, storing and even
talking about data, information and knowledge. We mean action as in business
and customer outcomes, creating value in an informed way. But of course in the
bigger picture, action can also simply be learning or anything else.

DIKW through the eyes of IoT company AGT as mentioned on Electronics 360 –
a focus on decisions and actions
Fun fact to know: although a 1989 paper from Russel L. Ackoff, entitled ‘From
data to wisdom’ is often cited in the context of the DIKW hierarchy, there seems
to be a more poetic aspect about it too.

From the poem by T.S. Eliot, The Rock:

Where is the wisdom we have lost in knowledge?
Where is the knowledge we have lost in information?